Work and pensions secretary Mel Stride has promised “better times” ahead next year, as inflation fell again.
Stride said on Wednesday morning the country was “turning the corner on the economy”.
It came as the latest figures showed inflation had dropped to 3.9% in November - down from 4.6% in October.
Rishi Sunak had made halving inflation from its level of 10.7% at the start of the year one of his key promises to voters.
Speaking to Times Radio, Stride said: “It’s a very significant drop in the level of inflation today.
“We have successfully now over halved inflation. That will take a lot of the pressures.
“We’re really in a position now where I think we’re turning the corner on the economy. We’re going to have better times, I think, ahead next year.”
Sunak has said the general election will be held next year, with the Tories currently trailing badly in the polls.
Stride admitted there was “a fair bit of ground to make up” but argued “there’s all to play for”.
“There is a wide lead in the polls at the moment, but it’s very thin and we will be fighting for every single vote,” he said.
“I do feel that that lead that Labour has, it may be wide, but it’s very thin.”
While inflation has fallen, the prime minister is not doing so well on his other four pledges to voters.
He has promised to “stop the boats” but people seeking asylum are still crossing the channel and his Rwanda deportation scheme has been snarled up in the courts.
On Tuesday Sunak was slammed by the UK statistics watchdog for wrongly claiming that government debt is falling, another key pledge.
The prime minister promised to bring down NHS waiting lists, but they have risen.
And while he pledged to grow the economy, official figures show it has remained flat.